H.C. Wainwright lowers Adagene stock price target to $7 on development path clarity

Published 15/08/2025, 12:50
H.C. Wainwright lowers Adagene stock price target to $7 on development path clarity

Investing.com - H.C. Wainwright lowered its price target on Adagene Inc (NASDAQ:ADAG) to $7.00 from $8.00 on Friday, while maintaining a Buy rating on the stock. Currently trading at $2.01, the stock sits well below the consensus analyst target range of $3.50 to $21.07, though InvestingPro data suggests the shares are trading above Fair Value.

The adjustment follows Adagene’s End-of-Phase 1 meeting with the FDA, where the company reached alignment on trial designs for both Phase 2 and 3 studies of muzastotug (ADG126) in patients with microsatellite stable colorectal cancer (MSS-CRC).

H.C. Wainwright described this regulatory milestone as important, noting it provides clarity on ADG126’s development path and sets the stage for the company’s next value inflection point.

Adagene is evaluating ADG126, a human IgG1 masked anti-CTLA-4 monoclonal antibody based on its proprietary SAFEbody platform, in combination with pembrolizumab (Keytruda) in refractory MSS-CRC patients without liver metastases.

The revised price target is based on a risk-adjusted net present value analysis of projected future revenues from Adagene’s product candidates, assuming a 12% discount rate and 0% terminal growth rate.

In other recent news, Adagene Inc. has made significant strides in its clinical and business endeavors. The company received the U.S. Food and Drug Administration’s endorsement to advance its lead program, muzastotug, into a Phase 2 trial. This trial will evaluate the drug in combination with Merck’s pembrolizumab for patients with microsatellite stable colorectal cancer. Additionally, Adagene has formed a partnership with ConjugateBio Inc. to supply a proprietary antibody for bispecific ADC development, securing upfront, milestone, and royalty payments.

In another development, Sanofi has committed up to $25 million in strategic investment in Adagene, which will support the clinical development of muzastotug. This investment also marks the expansion of their existing partnership, with Sanofi exercising its option on a third SAFEbody discovery program. Furthermore, Leerink Partners has initiated coverage on Adagene with an Outperform rating, highlighting the potential of its lead program in cancer treatment. These recent developments underscore Adagene’s ongoing efforts in advancing its research and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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